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Several of Group’s Board Members Represent the Few Credit Unions (Only 3-8%) That Use Forced Arbitration While the Group’s President Has Been in the Pocket of the Big Banks and the Financial Industry for 20 Years

When it comes to the Consumer Financial Protection Bureau (CFPB)’s rule on forced arbitration, trade groups like Credit Union National Association (CUNA) have been among the loudest voices of opposition. A curious position considering the fact that 97% of credit unions don’t use forced arbitration in their credit card contracts and only 8% of banks and credit unions have such clauses in their checking account agreements. Why does the Credit Union National Association oppose efforts to end forced arbitration when most credit unions don’t use it? Perhaps the answer can be found by looking at the group’s board and president.

Several CUNA Board Members Are Associated with Credit Unions That Use Forced Arbitration Unlike 92-97% of Credit Unions Overall

CUNA Board Member Tony C. Budet is President and Chief Executive Officer of University Federal Credit Union. University Federal Credit Union’s “Business Membership Agreement” contains a mandatory arbitration clause. Despite its own use of arbitration clauses, an information guide written and distributed by University Federal Credit Union urges members to avoid buying cars from dealerships that utilize binding mandatory arbitration because the clauses “severely limit your legal rights.” It also notes that consumers “may be forced to buy from a dealership with this very bad clause” due to a lack of options. [“Tony C. Budet,” Credit Union National Association, accessed on 10/23/17; “Business Membership Agreement,” University Federal Credit Union, accessed on 10/23/17; “Wheels 101® Buyer’s Guide,” University Federal Credit Union, accessed on 10/23/17.]

CUNA President & CEO Jim Nussle has opposed the CFPB’s arbitration rule and backed efforts to repeal the rule. As a Congressman he took nearly $1.5 million from financial interests and his second largest donor was the American Bankers Association.

Why would Nussle support repealing the CFPB’s rule on forced arbitration when most credit unions don’t use such clauses? During his congressional career, he areceived $1,436,239 from the financial industry. Nussle’s second largest contributor during his congressional career was the American Bankers Association, receiving $78,800 from 1989 to 2006. [Open Secrets search for Jim Nussle, accessed 10/23/17; Open Secrets search for Jim Nussle, accessed 10/23/17.]

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